Manny, Moe and Jack will have $5 million less in the bank account after today's announcement from the Justice Department that the auto parts and service provider would be settling a civil claim for importing and selling Chinese-made motorcycles, recreational vehicles and generators that do not comply with environmental requirements.
The complaint--the largest vehicle and engine importation case brought by the United States to date under the Clean Air Act--alleges that Pep Boys and makers Baja imported and sold at least 241,000 illegal vehicles and engines from 2004 through 2009, machines that did not comply with the Clean Air Act emissions requirements.
"Importers of foreign made vehicles and engines must comply with the same Clean Air Act requirements that apply to those selling domestic products," said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division.
Pep Boys was the third-largest importer of Chinese-made ATVs in the U.S. in 2008; and in 2006 and 2007, the company was the fourth largest importer of generators.
According to the Justice Department, Pep Boys will both pay a civil penalty and offset the excess emissions from the vehicles and engines already sold, estimated at 620 tons of excess hydrocarbon and nitrogen oxide emissions and more than 6,520 tons of excess carbon monoxide emissions.
"Equipment imported into the United States that does not meet our pollution control rules is bad for human health and the environment, and unfair to those companies that play by the rules," said Cynthia Giles, Assistant Administrator for Enforcement and Compliance Assurance.
Pep Boys will have to export or destroy over 1,300 non-compliant vehicles and engines (although one might argue that allowing the units to be exported does nothing to reduce carbon emissions).
As part of the settlement, Pep Boys will also offer a free extended emission warranty on certain vehicle and engine models, reimburse consumers for emission-related repair expenses, and implement rigorous corporate compliance plans.
Pep Boys is a national automotive aftermarket and service chain with more than 580 stores in 35 states and Puerto Rico.






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